Time is money for service-based businesses that rely on a labor workforce for productivity. These businesses use payroll applications for tracking time and estimating profits based on job costing reports. Many of these businesses also use accounting applications such as QuickBooks Desktop to manage their finances. While Intuit offers QuickBooks Payroll for job costing and other applications, many businesses use solutions by third-party providers such as Automatic Data Processing (ADP) for reasons ranging from features, cost, and familiarity. However, these applications often are not designed to work with QuickBooks Desktop. In this article, we will explore some ways in which users can work with data in QuickBooks Desktop and ADP.
Why Use ADP with QuickBooks Desktop?
Both ADP and QuickBooks have powerful solutions for small businesses. Here are some of the advantages of using ADP with QuickBooks Desktop.
- Organizations have comprehensive data generated using cutting-edge technology to simplify the processing of payroll, HR, and benefits, and help stay focused on their overarching goals.
- Enterprises can empower their customers with new payment options, such as digital platforms, mobile wallets, and paycards, and simplify financial workflows for scaling their businesses.
- Businesses have a flexible and comprehensive solution that their accounting teams can use to improve their productivity and accuracy.
How To Record ADP Checks in QuickBooks Desktop?
While connectors can be used for a 2-way integration between QuickBooks Online and ADP, there is no automated method for importing/exporting data between the applications. Here is how users can record ADP checks in QuickBooks Desktop.
- Ensure that there are Payroll Liabilities, Direct Deposits, Wages Expense, and Payroll Tax Expenses in the Chart of Accounts in QuickBooks. Other expenses can also be added based on the benefits that the company offers.
- Click on Banking>Write Checks.
- Use the number that ADP provides to write the check and update the appropriate account and the amounts.
- Finally, ensure that the actual withdrawals from the bank account that ADP uses are recorded. The difference between the net amount and what ADP withdraws has to be zero for each account until the next pay date.
While this method can be used to record financial data related to ADP in QuickBooks Desktop, it has to be done individually for each employee. The only alternative to automate the process to a certain extent is by using 3rd party tools to import payroll data as journal entries.
Apps4Rent Can Host Financial Applications for Improving Productivity
Although ADP has a mobile application and a connector with QuickBooks Online, many QuickBooks Desktop users also use the application for processing payroll. Such users can install QuickBooks Desktop on virtual machines and access the ADP desktop dashboard using the same machines. This improves the user experience without compromising on the security of financial data.
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